Investors in the State Street SPDR S&P 500 ETF Trust (SPY) are engaging in new options trading today for expiration on June 1st. A notable put contract at the $735.00 strike price has a current bid of $6.60, effectively lowering the potential purchase price to $728.40 when including the premium, which represents a 1% discount to the current trading price of $740.54 per share.
On the call side, a contract at the $745.00 strike price is bid at $5.76, allowing investors who buy shares at $740.54 to potentially earn a total return of 1.38% if the stock is called away at expiration. The odds of both contracts expiring worthless are approximately 58% for the put and 60% for the call.
The implied volatility for the put is 15%, while for the call it is 14%. The actual trailing twelve-month volatility is calculated at 12%, based on the last 250 trading days.
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